1.2. Installing SharePoint: Single Server and Server Farm
SharePoint may come in two sizes, but it can actually be installed three different ways: Basic, Stand-alone Server, and Server Farm. The last two options are under the heading "Advanced."
The Basic install assumes that you are going to use only one server ever to run SharePoint and that you don't have a copy of SQL handy to use for its databases. What it does in that case is install SharePoint assuming all necessary services are going to run locally and that you need it to install the free "Windows Internal Database," which is Microsoft's nickname for its SQL Server 2005 Embedded Edition database (SSEE).
Desktop Database Primer
MSDE was Microsoft's free desktop database engine, ...
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